How CBN’s ATM Charges Will Hurt Low-Income Nigerians—FinTech Expert.

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A FinTech executive and techpreneur, Tope Dare, has expressed concerns that the Central Bank of Nigeria’s (CBN) revised ATM withdrawal fees, set to take effect on March 1, 2025, will disproportionately affect low-income Nigerians.

“This policy ultimately favors those who can afford to withdraw larger sums, while the average Nigerian, who withdraws in smaller amounts, bears the brunt,” Dare stated. “For many low-income earners and small business owners, withdrawing N5,000 or N10,000 at a time is a daily necessity. Now, they face unfair charges that wealthier Nigerians can easily avoid.”

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The new policy introduces a tiered fee structure, charging N100 per N20,000 withdrawal at ATMs within bank premises and up to N500 for withdrawals from off-site ATMs in locations like malls and fuel stations.

While the CBN argues that the policy is necessary for banks to recover operational costs and expand ATM networks, critics like Dare counter that it targets those who withdraw small amounts frequently.

A recent street survey highlighted public frustration, with many respondents expressing concerns over the elimination of three free interbank withdrawals per month. This previously allowed them to access funds from any ATM without penalty.

The consumer rights group Socio-Economic Rights and Accountability Project (SERAP) has already taken legal action against the CBN, calling the policy “unfair, unreasonable, and unjust.” SERAP argued that the revised fees violate sections of the Federal Competition and Consumer Protection Act.

Dare noted that the lawsuit seeks to have the policy overturned, citing its disproportionate effect on the poor. “The CBN should focus on making banking more accessible, not discouraging small transactions. If this policy must stand, there should be exemptions or lower fees for small withdrawals to protect vulnerable Nigerians,” he said.

Beyond the direct financial impact, Dare warned of potential long-term consequences. Nigeria is already struggling with financial inclusion, with at least 31 per cent of the population lacking sufficient education to navigate complex banking policies.

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Many worry that confusion over the new charges could drive people away from formal banking, increasing reliance on costly and unregulated alternatives.

“The CBN should focus on making banking more accessible, not discouraging small transactions,” Dare said. “If this policy must stand, there should be exemptions or lower fees for small withdrawals to protect vulnerable Nigerians.”

As the implementation date approaches, public pressure on the CBN continues to mount. Whether the apex bank will reconsider the policy or push forward despite growing opposition remains to be seen.

However, Dare stated, “Without adjustments, Nigeria’s most financially vulnerable citizens stand to lose the most.

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